This chart is to show how carry trade strategy is being hurt badly this year. Price of PowerShares DB G10 Currency Harvest (DBV) has lost, roughly, around -25% (from 27-ish to 20-ish) This is likely going to be a shitty year for carry traders.
Here is the….CHART!
[photopress:DBV_carry_Trade.jpg,full,1]
OH Crap. AUDUSD falls below 0.75 for the first time in 2 years. Stock market took a tumble. All ordinaries lost around -3.3% today. What’s going on? On the paper, the reason, as expected, “people are expecting a 50bp rate cut tomorrow”. Well, probably. Anyway, it is indeed a bad day.
Here are some random thoughts..
It is a mess in the Aussie markets. Well, at least , in my point of view. People are panic, they are guessing, or even expecting Australia to be hit by the same shitty condition like America. Government is putting a rescue package in front. The past glorious years have made a lot of Aussie allocating a big portion of their wealth heavily in stocks market. Not to mentioned the crappy Superannuation. Experts on the TV are still advising the dads & mums investor to hold on their positions.
Anyway, I can’t see it clearly now. I don’t have a clear plan to work in this market condition. Uhm..so I guess, I will be better off staying aside. Am I too slow or not ‘intelligent’ enough to profit from this market condition? uhm…probably.
But, it is good to be safe, and holding cash at the moment…I guess.
by Gav 3 Comments
So, the House decided not to save the rich-men World. Dow index collapsed 777 points. Gold rallies now. But, where is Aussie dollar going? Decoupling from Gold movement? Australia is one of the largest gold exporters. Of course, this doesn’t guarantee the prosperity of australian dollar.
But, what exactly is the problem of Australia economy? OK,It stalls now. Well, some banks have some shitty involvements in America. Economic figures are not signaling disaster at the moment. There might be some shitty underneath, but, at the moment, I see this as panic selling. And I for one, do not believe in USD rally.
Technically, we are still sitting on the weekly support line. With support of the Gold. I am putting a small long position of Aussie dollar now. As usual I can be very very wrong, but I want the market to prove me wrong.
It has been a painful journey for Aussie bulls. Weaker commodities, strong dollar ..whatever, you’ve read it on the papers. I have been following it all this time. Here are some observations. Is Dollar hitting resistance now? Are Aussie and Gold reaching support now? uhm… What do ya think?
Here are the ….CHARTS!
Dollar Index
[photopress:DXweekly.jpg,full,1]
Gold
[photopress:Goldspotweekly.jpg,full,1]
AUDUSD
[photopress:AUDUSDweekly.jpg,full,1]
Charts and data provided by Market Club
I made 2 day trades yesterday. Long EURUSD, Short USDCHF. Simple setup. But, instead of waiting for the planned target, I chickened out on exit. Well…
Beautiful charts.
[photopress:_USDCHF3_9_2008_1.jpg,full,1]
[photopress:EURUSD.jpg,full,1]
Side note. If you are not reading this post on tradergav.com, please leave immediately. My posts are stolen by some sissy birds recently. They created a new website and published my work without my knowledge.
I have not been upgrading my trading hardware for a long time. I used to trade with my laptop and a old 15″ LCD monitor for the past few years. OK, I am a stingy asian man. 😆 . Anyway, I just got my Samsung SyncMaster 2253LW 22″ LCD monitor from ebay yesterday. Cool stuff. Now here is my new hardware setup.
[photopress:IMG_0253.JPG,full,1]
